This article first appeared in The Edge Financial Daily on July 10, 2019

KUALA LUMPUR: Aeon Credit Service (M) Bhd is being sued by the government to recover unpaid taxes. In a Bursa Malaysia filing yesterday, Aeon Credit said it had received a writ of summons, with a statement of claim from the government, to pay taxes due for the years of assessment 2010 to 2016.

When contacted, Aeon Credit chief financial officer Lee Kit Seong told The Edge Financial Daily the matter is in relation to the RM96.8 million in additional tax and penalties that the Inland Revenue Board (IRB) had demanded from the company for the assessment period, which it announced in 2017. The matter has been fixed for case management at the Shah Alam High Court on July 23.

“Upon consulting its tax solicitors, the company maintains its stance that there is a good basis in law to challenge the validity of the taxes and penalties demanded by the director-general of [the] Inland Revenue [Board] and also the civil proceedings commenced against the company.

“This is especially when, at all material times, the company had sought professional advice from an independent and reputable firm of tax consultants on its tax treatment and that the notices of additional assessment for the years of assessment 2010 and 2011 are time-barred,” said Aeon Credit, adding that further announcements will be made as and when there is a material update.

After Aeon Credit was slapped with the additional tax and penalties at end-2017, it filed an appeal with the IRB. It also applied for a judicial review to challenge the validity of the assessment, and sought for a stay of proceedings.

In March 2018, the company said the High Court had dismissed the judicial review application. Its bid to halt proceedings was also rejected in May. Though the company appealed against the High Court’s rejection of the stay of proceedings, the appeal was subsequently dismisssed on April 5.

It then proceeded with the appeal against the rejection of its judicial review application. The hearing of this appeal has since been fixed on Oct 9.